M Mpahlwa: South Africa-Guinea Bissau Forum

7 August 2007

Your Excellency, Martinho N'Dafa Cabi,
Honourable Ministers,
Ambassador Majola!
Leaders of Industry from both countries
Distinguished guests
Ladies and gentleman,

I firstly wish to use this opportunity to congratulate HE Matinho N'Dafa
Cabi upon his appointment as Prime Minister of Guinea Bissau. Prime Minister,
may we also use this opportunity to together recognise and celebrate the growth
in real Gross Domestic Products (GDP) by 2,1% in 2006 and the very high
expectations for growth in the immediate future for your country. These
expectations tell us of a nation that is growing in confidence and that has
begun on a systematic path of development. As much as these developments are an
inspiration! Your country inspires us too.

Zambia's first President Kenneth Kaunda reminded us a few months ago of the
excitement and inspiration as African countries began freeing themselves of
their colonial rulers. President Kaunda said "it was a fantastic time. Ghana's
first president Kwama Nkrumah, invited me to Accra for the festivities. All of
Africa was celebrating, and it was truly incredible. People were singing and
dancing in the streets. We wanted to reshape the world and we wanted to do
everything differently."

Since those heady days, it appeared for a long time that Africa could never
pretend to the ambition of re-shaping the world and doing everything
differently." It is therefore a great honour for me to be
present here today, where indeed we are doing something differently, the honour
of a first visit by the Prime Minister of Guinea Bissau.

Our task therefore it exciting differently than before is to put into action
our ambition. And our ambition today is to utilise this opportunity to ensure
increased economic co-operation between South Africa and Guinea Bissau. This
event must therefore foster and highlight the importance of creating effective
linkages between our governments and business communities. It is at this point
that must say that it is with the deep lessons of its history in mind that
democratic South Africa has committed itself to doing all it can to rebuild our
continent.

We believe we all stand to lose if our growth is seen as a threat rather
than an opportunity. South Africa's economic policy for Africa is therefore
fundamentally developmental in nature and is rooted within our foreign policy
in which Africa is the first priority and the framework of New Partnership for
Africa's Development (Nepad). The policy is premised on the necessity to
promote intra-Africa trade and to deepen regional economic integration. Africa
forms the focus of South Africa's global economic, strategy, within which
government pursues a strong developmental agenda.

Partnerships with countries on the continent are therefore considered vital
and strategic South Africa's economy inextricably linked to that of Africa as
whole and her own success is linked to the economic recovery of the continent
through Nepad. In this respect, ladies and gentlemen, South Africa and
Guinea
Bissau established formal diplomatic relations in October 1994 and it is true
to say that we have not yet fully exploited our potential relationship. Let me
therefore at this point also acknowledge the role of Ambassador TC Majola, who
is also an Ambassador for Senegal, Mauritania and Cape Verde and who has done
much to ensure that we act differently.

With our support she will be key driver in deepening our economic
co-operation and we wish her well in this task. Prime Minister Cabi, both South
Africa and Guinea Bissau face bright economic futures and we will be stronger
working together than working alone. In South Africa, government has just
released the national industrial policy framework and action plan. The
implementation of the plan will result in a step change in industrial
development and will open up new frontiers in manufacturing activity.
Similarly, I understand that Guinea Bissau seeks to expand the diversity of
products and sectors beyond the well performing cashew sector. We have head for
instance that the development of both the
Bauxite and Phosphate industries and the existence of unexplored crude oil, can
significantly contribute to job creation and economic growth.

To realise the potential of these sectors will involve enhanced investment
and industrialisation. The potential for greatly increased economic
co-operative between our respective countries is therefore obvious and the
challenge before us is to establish the mechanisms to do so.

For that reason, we must accelerate the process negotiating and signing of a
Bilateral Trade Agreement, a Reciprocal Protection and Promotion of Investment
Agreement and a Memorandum of Understanding (MoU) on Economic Co-operation.
Furthermore in regard to this proposed memorandum we must consider developing a
comprehensive programme of action that will facilitate and monitor the level of
technical co-operation between the two countries.

In particular the conclusion of a Memorandum of Understanding on Economic
Co-operation framework would, for instance, enable this government to mobilise
the exchange of expertise and technology from a variety of government
departments and state agencies to support the commercialisation process of
agriculture in Guinea Bissau, amongst other initiatives. This is also the
context within which the developmental impact of the work of the State Owned
Enterprises (SOEs) in the rest of Africa is subject to codes of conduct
regulated by government. The entities are required to integrate commercial
viability and returns in investments with appropriate policies and procurement,
the empowerment of small, medium and micro enterprises (SMMEs), the employment
of local labour and services. Furthermore they are required to specifically
intervene to encourage sustainable development towards the upliftment of
communities. This ensures that backward and forward linkages are built through
technology transfer, employment and skills development.

We want to see more use made local enterprises in the supply chain, thereby,
contributing to more sustainable and job-creating investment outcomes.
Similarly, the government would like to see all South African investment,
including that of the private sector; make a positive contribution to economic
development and industrialisation. Indeed, we regular advise the private sector
with the sustainability of their business which is directly proportional to the
deepening of partnership ties with local entrepreneurs.

This developmental approach is one that emphasises broad based engagement
that seeks to strengthen economies. This approach seeks to unleash the
potential and build long term partnerships in order that our own growth will
pull growth on the continent. Therefore the proposed memorandum would also
encourage and establish institutional relations between CHAMS 4, Business Unity
South Africa (BUSA) and Guinea Bissau Manufacturing Industries Association and
the Bissau Chamber of Commerce.

These steps will be complemented by the fact that we have appointed a
Foreign Economic Representative for trade and investment related issues in
Senegal, with major responsibilities in relation to Guinea Bissau. This person
reports directly to the Department of Trade and Industry and I can assure you
Prime Minister that we will make sure that she fulfils those
responsibilities.

We also propose to co-operate with our colleagues in Guinea Bissau to foster
trilateral and multilateral partnerships for development. We will encourage
South African skills and knowledge to avail themselves as preferred technical
partners for implementation of various projects in the region. In most areas
South African skills and knowledge is sub-contracted, by developed nations, to
implement skills in the region. Joint venture partnership with various
development agencies and multilateral institutions is vital for the
implementation of projects in the region and we will if requested, provide the
necessary support and partnerships.

Ladies and gentlemen, together we must also encourage the development of
energy and mineral resources in the region. We know that Africa is an
increasingly important oil supplier for both developed and developing nations
of the world, with 25% of oil export destined for China, 15% destined for
United States. Oil export to these countries is estimated to rise even more
with China demanding 60% of oil resources by 2020. Energy resources in South
Africa are also becoming a challenge and alternative sources of energy is
needed to meet the rising demand. West Africa presents an ideal opportunity to
meet such demand. With Sasol and PetroSA being the forerunners in gas to liquid
technology, huge opportunities exist for joint venture partnerships and
capacity building in this area. South Africa also has significant resources in
technology and equipment for extraction of minerals and joint venture
partnership with Guinea
Bissau could be encouraged to develop these resources.

Ladies and gentlemen, I would like to conclude by pointing out that all
these issues I have raised today can be summarised by saying that our ambition
is that in collaboration with Guinea Bissau, we seek to encourage the
implementation of an African agenda that will enhance the development of trade,
cultural and civil society association between stakeholders in South Africa and
Guinea Bissau.

I am confident that the various presentations and deliberations on
opportunities in Guinea Bissau will yield tangible results in terms of trade
and investment between our sister countries. It is my sincere wish that
mutually beneficial business linkages, partnerships and joint venture
partnerships will emerge from our discussions today. I wish you success in all
your endeavours.

I thank you.

Issued by: Department of Trade and Industry
7 August 2007